🎓 Definition

A category refers to a group of products that are related to each other and are typically sold in the same section of a store.

The category is an important concept in Merchandising Hierarchy, which refers to the organizational structure that Retailers use to manage their product offerings.

A category is the same as Range and includes its activation: Promotions. Nowadays, promotion is often enlarged to CRM and is personalized and Targeted (although CRM is often managed by Marketing)

🧪 Example of Category

The Fresh Produce category comprises a variety of fruits and vegetables, such as apples, bananas, oranges, lettuce, tomatoes, and cucumbers.

Retailers typically dedicate a significant portion of their store to fresh produce, as it's a staple item for many customers. Within this Category, Retailers may choose to offer a variety of organic, locally sourced, or seasonal produce options to appeal to different customer preferences.

Retailers may also segment produce by types, such as leafy greens, root vegetables, or citrus fruits, to help customers navigate the category more easily.

❓What is the Category used for
  • Categories are used to group similar products together in order to make it easier for customers to find what they are looking for.
  • Categories allow Retailers to organize their stores in a way that makes sense to customers and helps them navigate the store more easily.
  • By grouping products together into categories, Retailers can also better manage their inventory and track sales performance.
  • It also helps Retailers make informed decisions about product assortment, pricing, and promotions, as they can analyze sales data for each category to identify trends and opportunities.

Overall, categories are a key component of a Retailer's merchandising strategy and can have a significant impact on customer experience and sales performance.

Learn more about Category.
Merchandising Hierarchy
Targeted Offer